STAND. COM. REP. NO. 338________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 980
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B.
No. 980 entitled: 

     "A BILL FOR AN ACT RELATING TO IRRIGATION WATER
     DEVELOPMENT,"

begs leave to report as follows:

     The purpose of this bill is to assess only cultivatable
lands within the irrigation district boundaries.

     When the irrigation district systems were established,
environmental laws and resource management regulations that
currently restrict or prevent cultivation of stream beds, dry
gulches, and other noncultivatable lands were not yet in
existence.  This bill proposes the removal of such regulated
lands from the revenue base because income cannot be derived from
water use on these lands.

     The Department of Agriculture submitted testimony supporting
this measure inasmuch as no costs will be incurred upon its
passage which would adversely impact priorities indicated in the
Executive Biennium Budget.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for purposes of style and clarity.


 
 
 
 
 
                                 STAND. COM. REP. NO. 338________
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Agriculture that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
980, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 980, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Agriculture,



                                   ______________________________
                                   FELIPE P. ABINSAY, JR., Chair